The Strategic Human Resources Management Model and Its Effects - Research Paper Example

Strategic Management of Human Resources I. The Personnel Department The Personnel Department, now more commonly referred to as the Human Resources Department primarily handles and is generally concerned with managing and motivating people in the workplace (Personnel Functions). It is an indispensable part of any organization or corporation. It is the backbone of the company because it is where the most important facet of the company resources begins and ends. This very vital facet is the Human Resources. It is the beginning because the initial stages of the employee hiring process are initiated by the Personnel Department. From the interviewing, to the offer and to the new hire orientations, it is the jurisdiction of the Personnel Department. It is also the end because the Personnel Department is the last entity in the corporation which the resigning, retiring or terminated employees come in contact with. A. The Roles and Functions of the Personnel Department The most basic and more commonly known function of the Personnel Department is recruitment. The Department initiates and organizes the interview process after scouting for prospective applicants through job advertisements or invitations. After culminating the selection process, the new hires undergo an orientation session where the Personnel Department gives a more detailed introduction of the company, its hierarchy or levels, its policies, employee requirements and the specific duties needed for each position that the new employees are filling. In most cases, the Personnel Department is also responsible for Training and Development. Some companies with a large number of employees opt to maintain a separate Training Department but which is usually also in partnership with the Personnel Department. Training involves providing materials and means of skills acquisition to help the employees be more productive in their functions. The payroll function of this Department is in charge of the appropriate matching of salaries with the job function and employee capabilities, and the timely provision of compensation to employees. The Personnel Department acts as a mediation center where arguments, complaints or concerns are settled. They have the rewards and punishment control over the actions of the employees based on their policy regulation function. The evaluation or appraisal function is also a part of the Department's responsibility. The appraisal process is very important to this department because this is where they get inputs from both the manager and the employee or subordinate regarding the work attitudes and procedures, which they then use to formulate development plans. The Department also takes care of the processes for retirement and termination of employment with the company. Looking at all the functions of the Personnel Department, it is clearly shown that the main or primary job of this Department is to maintain order. Generally, order may mean upholding the policies of the company by closely monitoring and checking the employees' actions, but there are other meanings attached to the maintenance of order. This order may be in terms of relationships or the lack of it among colleagues or between a superior and a subordinate. This order may also be in the form of addressing the manpower needs of each department so they can function well to achieve company goals. This also may take the form of appeasing the concerns or complaints of the employees to maintain peace. Order may also refer to the continuous development of the staff through training to increase productivity. It may also mean the timely and appropriate response to questions relating to job functions and personal privileges or rights. B. Ways to Improve the Strategic Value of the Personnel Department Primarily, in order for the Personnel Department to be of strategic value to the company, it should first understand the goals that the company aims to achieve. Along with this understanding should come the responsibility to take part in the attainment of these goals through active participation. The Personnel Department should be proactive and progressive. It should embrace changes and look forward to it. Changes offer development and improvement. Change is not something to be afraid of nor is it something to ignore. The traditional policies of the company should be reviewed and assessed as to the usefulness and appropriateness to the changing times and to the evolving attitude and skills of the workforce. The department should be willing to modify its rules and programs to suit the emergence of new ideas, skills and technology. The Department must not stick to the function of implementation or regulation. They also have an important role to play in the decision-making processes of the company. By studying the current employee profile, the turnover rates, the appraisal results and feedback from both managers and subordinates, the Personnel Department may analyze trends and present these findings to the top management. The analysis should be well documented to show proof of their findings. They will then provide suggestions for courses of action. The Department should be knowledgeable not just on company policies but also on labor laws, government policies and procedures and the elements and functions of other departments in the organization. They should not only be knowledgeable, but they should always be willing and ready to share information to the employees. Their response time should be quick and their communication gateways should be open at all times. This way the employees will value them as an important source of needed information and thus will consider them a very vital part of the company. Training and Development should also be focused on to develop and retain personnel. Placing emphasis on personal development and improvement of skills and knowledge will make the employees feel important and valued. Retention is always better than hiring new employees because the current personnel are already comfortable and adept in doing their jobs. They just need ample guidance, assistance and motivation. Besides, hiring a new employee is more expensive than retaining one. Development trainings cost less than in-depth trainings for new employees. There is also the factor of revenue loss due to expected errors of new employees who are still getting the hang of it. Transparency is also a key factor in the department developing its strategic value to the company. Transparency on both ends of the company hierarchy is the most effective kind of transparency. The Personnel Department should always be open and ready to provide information to the top management regarding employee concerns or complaints so they may immediately act on these matters before things get out of hand. In the same way, the Department should be fast and consistent in delivering company information to the employees. The employees should always be well-informed. The fact that they are given news instantly and are not disregarded gives the employees the feeling of worthiness. This will in turn translate to the employees regarding the department as responsible and employee-centered. II. Employee Relations Employee Relations involves maintaining employer-employee relationships which lead to higher degree of efficiency, productivity, motivation, and morale in the workplace (Employee Relations, 2001). It is likewise concerned with the prevention and resolution of problems among employees in the course of their work. Employee Relations also covers the area of reacting to misconduct of employees by referral to immediate superiors or imposing sanctions. Resolution of the employees' grievances and appeals are likewise within the scope of Employee Relations. A. What is an Employee Relations Strategy The Employee Relations Strategy is primarily about empowering the employees. The strategies include employee involvement in the decision-making processes, conflict resolution, employee retention techniques and other strategies that aim to develop positive employee relations. The strategies are employed to gain commitment from the employees and to improve their quality of work. The Strategies focus on the improvement of the employee-employer relationship and translating this sound interaction into mutually beneficial end products. The employee involvement strategy aims to include the employees in the decision-making processes of the company by information dissemination, feedback system and consultation sessions. It gives the employees the privilege to take part in the formulation of regulations and strategies for the company's growth. At the same time, it also assigns them responsibility because the suggestions or feedback they give should embody the interest and the utmost benefit of the majority. Conflict resolution is providing venues and means harmonious to the interests of both the management and the staff where problems will be analyzed and agreements will be made. Employee retention is another strategy where interviews are done or questionnaires are given to current employees with questions asking them about views on how the company is run, how their relationships with colleagues are and what their short and long term career plans are. This will gauge the employees' level of satisfaction in their employment with the company. Exit interviews are also used as basis for improving the employee retention strategies. What the resigned employee or even a terminated employee has to say should be considered and analyzed to really assess the present situation in the workplace. Developing the rewards system, improving the employee benefits and the physical working environment, and of course adjusting the compensation definitely help in the retention process. The communication processes or strategies should likewise be improved. Information should be distributed properly. The provision of Information to employees is always for the promotion of a clearer understanding of the company's goals and policies (Employee Relations, 2001). Employees use the Information cascaded to them in validating the rules and regulations they are aware of. They likewise use the information to correct a misconduct or to improve a below par performance. Communication should also include details about the rights and privileges of the employees. B. Choices Available to Organizations and Trade Unions Organizations are groups of individuals with a common goal or who campaign for a common cause or who share the same ideals or experiences. The key factor here is commonality. Members of organizations have something in common. Otherwise, they would not join the group. As members of an organization, they have responsibilities to do in order to keep the organization active or at the least running. They participate in activities as a group to promote their cause. In the case of Trade Unions, it is an association of workers, may be limited to a certain company or could be a more massive group involving several companies. The common goal of these workers is to maintain their jobs and to achieve better conditions at work. Better conditions include increase in pay, increase in benefits and the improvement of the physical working environment. The trade union negotiates agreements which protect the interests of its members. It also assists in providing legal and financial advice. Organizations, more particularly Trade Unions have several rights or options they can choose from so they can advance their cause. The primary option open to members is collective bargaining. The Collective Bargaining function is known to the company. The company is ready and open to negotiate with the union. Collective Bargaining Agreements usually cover negotiations on wages and working conditions. This is important in companies where an employee finds it hard to voice out his or her personal concern or complaint. A factor could be the size of the company, where the Human Resources Department is unable to keep up with the large number of employees. Individual voices of employees are seldom heard. With the Collective Bargaining Agreement function of the Trade Union, a member can voice out concerns along with others who share the same view. This way, the company will set an appointed time for a dialogue and a time frame for reaching an agreement. In this case, there is strength in number. Trade Unions also have the choice or right to file grievances. This could be in behalf of only one employee or a select group, or in behalf of all the members of the union. Grievances could be due to unjust practices at work, inhumane working conditions or unfair disciplinary procedures. One employee may not be given the light of day when he or she files a complaint to the company, but if the union acts on it, the company will listen. Companies almost always interact and respond to Trade Unions. They may not always agree or give in but companies know the importance of showing the unions that they are listening. Otherwise, they risk work interruptions due to strikes or lockouts. This now leads to the next activity that the union may engage in. They can organize lockouts or strikes so they can publicize their grievances. The unions also have the right to consultation periods with the company. Consultations often involve updating of information regarding the company's status in terms of its present policies relating to the management of employees, its up to date financial status, its upcoming activities and future plans. Generally, organizations or Trade Unions exist so each member will gain power through number. C. Can Employee Relations Fit in the Strategic Human Resources Management (SHRM) Model Let us first define what a Strategic Human Resources Management (SHRM) is. It can be defined as the integration of the function of the human resources with the strategic goals and objectives of the company to improve the productivity of its employees, thus increasing the company's market worth (Sinha). This model espouses the involvement of the Human Resources Department in the formulation and implementation of the company's strategies through the department's functions of recruitment, training and affording reward to personnel. The Strategic Human Resources Management Model aims to revolutionize the role of the Human Resources department from merely being a regulating body to a more proactive and significant part of the organization. As a regulating body, the HR Department makes sure that rules are followed, policies are implemented and that employees are doing what they are supposed to do based on their job descriptions. With this model, the Human Resources Department will also have several other roles. They would have to initiate studies across the workforce population to gather information about the satisfaction or dissatisfaction level of the employees. Details such as concerns, complaints or suggestions are important in the analysis of the present situation or state of the employee base. These studies will transform the role of the Human Resources Department into a strategic partner because policies can be altered, scrapped or even formulated based on the results. Responding to the results of the studies will put emphasis on the most viable resource of the company - the employees. It is not only the employees who will benefit from this function of the department, but the advantage also goes to the company who will eventually reap harvest at the end brought about by the increase in the quality of work of the employees. This model also applies to the recruitment process. The Human Resources Department will select and hire employees with attributes that are in congruence with the company's goals. Interviews will be planned with questions relating to the objectives of the company. Past experiences with employees who either resigned or were terminated will be considered in deciding the personalities of the employees to be hired. Can Employee Relations fit in the Strategic Human Resource Management Model Yes, it definitely can. The model is all about empowering the Human Resources Department to be a vital member or contributor in the strategic planning process for the company's growth. In relation to this empowerment lies the development of Employee Relations as major function of the department. The strategic involvement of the Human Resources Department advances the cause of the employees and at the same time helps the company in achieving its goals in a more home-based manner. Home-based refers to internal factors which primarily include the employees. External factors may include market trends, political climate, global economy and other pressing global issues. A good example of how Employee Relations fit in the model is the training strategies of the company. Retention of employees is a prime concern of Employee Relations, and Strategic Human Resource Management comes into the picture by emphasizing on the importance of training in the personal and work-related development of the employees. Suggesting policies on training development along with the emphasis on the importance of training will drive top management to analyze and incorporate the suggestions in the formulation of new policies. The suggestions should of course be backed up by physical proof, which may include studies or interviews. Another point which proves that Employee Relations can fit in the Strategic Human Resources Management Model is the employee involvement strategy. Since Employee Relations aim to give employees a more active part in the decision-making processes, they are in effect representing the employees and their welfare in the top management table when they suggest management strategies particular to Human Resource Functions. The relationship between management and staff will always improve if the staff feels that they are valued by the organization and that their efforts have not gone unnoticed. If they feel that they are being rewarded for a job well done and if their concerns are being heard, they will try to pay back by doing a better job. They will develop a renewed sense of responsibility and pride in the organization they belong to. In a further discussion of the Strategic Human Resources Management Model and its effects, it is important to mention the dwindling presence of trade unions in the workplace. With the progressive goals of employee relations to involve employees in management processes, employees are now feeling that they finally can be heard on their own. Since more Human Resources Departments are conducting open feedback sessions or interviews with employees regarding their views or concerns, more and more employees are discovering that they need not belong to an organization or a union to express themselves. A decline in Trade Unions or the decline of its activities reflects the fact that work-related complaints are decreasing and that major grievances regarding unjust practices or policies are not prevalent in the workplace. There is also a weakening of collectivism with the emergence of individual contracts. More companies now are not offering wages across the board but they are individualizing salaries and benefits in accordance with the qualifications of the workers. Individual contracts are almost always confidential with the premise that salary scales and the benefits structure are different per position or rank in the company. This confidentiality results to a silent rule of not being able to join trade unions. Most of the time, employees who are about to sign contracts would always prefer the confidentiality and the competitive salary as opposed to having the choice to join a union. Ultimately, all companies aim to be competitive in the market that they belong to. Sometimes, they aim to cross the boundaries and step a little further to join another market. It is to their belief that competitiveness or even superiority is a result of attained profits. If products or services are patronized to the extent that the companies are earning a lot of money, then that is the meaning of success. With the emergence of companies sharing the same goals, catering to the same market and offering the same goods and services, the difference lies in the company's human resources. Their competitive advantage now rests in the hands of the employees. It is now the skills or expertise of the employees which makes the company superior over the other. Moreover, the employees' work ethic and their willingness to adapt to changes to achieve the company's goals will prove to be the road to success. References Employee Relations. (2001). [online].[Accessed 2nd June 2007]. Available from OHCM: http://ohcm.gsfc.nasa.gov/employee_relations/whatis.htm Personnel Functions. (n.d.). [online].[Accessed 2nd June 2007]. Available from The Times 100: http://www.thetimes100.co.uk/theory/theory--personnel-functions--200.php Sinha, R. (n.d.). What is Strategic Human Resource Management [online].[Accessed 3rd June 2007]. Available from Ezine Articles: http://ezinearticles.comWhat-is-Strategic- Human-Resource-Management&id=549585 Read More